WASHINGTON — During his Senate confirmation hearing, Dr. Mehmet Oz, President Donald Trump’s nominee to lead Medicare and Medicaid, avoided answering several questions from senators about his stance on a House budget resolution that could result in substantial cuts to Medicaid. The budget plan, approved by House Republicans recently, calls for the Energy and Commerce Committee to identify over $880 billion in mandatory spending reductions over the next decade, with a significant portion expected to come from the healthcare program.
Oz, a former surgeon and popular TV personality, stated his commitment to combatting waste, fraud, and abuse in the healthcare system as the potential administrator of the Centers for Medicare and Medicaid Services, a rationale some Republicans are using to justify the proposed cuts. However, he did not make any guarantees to safeguard Medicaid funding. “I want to ensure that current and future patients have the necessary resources in case they fall ill,” Oz remarked. “Protecting Medicaid involves ensuring its sustainability at all levels.”
If confirmed as CMS administrator, Oz would oversee Medicaid, Medicare, and the Affordable Care Act (Obamacare), collectively providing health insurance for approximately half of the U.S. population. Medicaid primarily covers individuals with low incomes, in addition to other demographics like older adults, pregnant women, and individuals with disabilities. As one of the largest sources of federal spending, Medicaid costs over $600 billion annually, according to government figures.
Oz’s reluctance to oppose potential Medicaid cuts appeared to unsettle several Democratic senators, who raised concerns about the direct impact on patients in their states. “My colleagues will all want to know: Will you cut Medicaid?” questioned Sen. Maria Cantwell of Washington. Senator Maggie Hassan of New Hampshire pressed Oz on how many children losing health coverage would be deemed “acceptable” to him, emphasizing the significant number of children covered by Medicaid. Oz expressed his disapproval of children losing health insurance but did not firmly reject the Republican budget plan.
The discussion also touched on Oz’s views on improving the efficiency of Medicaid funds, including supporting work requirements and exploring alternative eligibility criteria like participating in educational programs. Despite previous controversies related to his endorsements of health products, Oz focused extensively on artificial intelligence, aligning with the administration’s interest, and its potential applications in combatting misuse of prior authorization in healthcare.
Prior authorization, a process where health insurance companies require pre-approval for certain treatments, was a key topic during the hearing. Oz advocated for streamlining this process to be as efficient as a credit card transaction, acknowledging the balance between cost control and ensuring timely access to necessary care.
“It doesn’t take three months for card approval,” stated Oz. “You receive immediate confirmation of whether the transactions are approved or not.” He further emphasized, “I believe that we now possess the capability with technology that was nonexistent just a few years ago.” Oz also expressed concerns regarding Medicare Advantage, a health plan offered by private insurance companies, and criticized the practice of “upcoding” where insurers inflate government reimbursements to increase their profits. These comments are noteworthy considering Oz’s past support for privatizing Medicare and endorsement of various insurers operating under Medicare Advantage. “If appointed, I will address this issue,” Oz affirmed, referring to Medicare Advantage.
